Zloty Garners Strength After Solid Round Of Data

The Polish zloty outpeforms its CE3 peers after the remaining bits of the February batch of economic activity indicators crossed the wires. The data were positive on balance, the highlight being (perhaps) the combination of expectation-busting real wage growth and real retail sales, which testified to the emerging recovery of consumer demand. A rebound in household spending is expected to stimulate GDP growth this year but may also translate into continued stickiness of core inflation, providing an argument for more hawkish NBP members.

• EUR/PLN last deals -74 pips at 4.3029, with the pair hovering just above the psychologically significant 4.3000 figure. A break here would open up Mar 11 low of 4.2749 again. Conversely, bulls look for a rebound towards Feb 7 high of 4.3564.
• POLGB yields are 4.9-7.8bp lower across the curve, likely in a catch-up reaction to yesterday's Fed decision/rhetoric. Equity benchmark WIG20 Index is on the front foot, adding around 2% so far.
• Otherwise, the focus in Poland is on the ruling coalition's plan to put NBP Governor Glapinski on trial, with the text of a relevant motion being leaked to the media. The coalition is currently collecting signatures in support of the draft motion, which should be completed within the coming days.